Observe?

[Kyronex]

Ok so to sum this up.
If I do an action to raise item quality when condition is at the poor end of the scale, I wont get as big quality increase.. By using observe when the qual is poor or normal, you're taking a gamble you will get good or higher which will boost quality gained by the quality actions?

Correct?

Yes, the condition affects the quality increases of touches. Obviously, touching on Good or Excellent is best. Using Observe (or any other action) on Poor would yield Normal. Good and Excellent will only appear if the previous condition was Normal, see below:

Poor > Normal
Normal > Good or Excellent
Good > Normal
Excellent > Poor